Platinum Group Metals Ltd. has announced plans to raise approximately $1.01 million through a strategic private placement with its major shareholder, Hosken Consolidated Investments Limited (HCI). The investment represents a significant financial boost for the company's ongoing mining development efforts in South Africa.
The private placement involves the issuance of 800,000 common shares at $1.26 per share, which reflects a 3.1% premium above the five-day volume-weighted average price on the NYSE American exchange. Upon completion of this transaction, HCI will maintain a 26% ownership stake in the company, demonstrating continued confidence in Platinum Group Metals' strategic direction.
Proceeds from the share placement will be primarily allocated to supporting pre-construction activities at the Waterberg Project, a substantial underground palladium and platinum deposit located in South Africa. The funding will also contribute to the company's general corporate operational needs, enabling continued progress in mineral exploration and development.
The proposed investment is subject to regulatory approval and includes standard resale restrictions, with shares being subject to a four-month-plus-one-day hold period. This transaction was structured under exemptions to registration and shareholder approval requirements due to HCI's status as a related party.
The Waterberg Project represents a collaborative effort, with Platinum Group Metals working alongside key partners including Implats, Mnombo, and HJM. This joint development approach underscores the strategic importance of the project within the platinum group metals sector.
By securing this investment, Platinum Group Metals demonstrates its ability to attract capital from significant shareholders, which is crucial for advancing complex mining infrastructure projects. The transaction highlights the ongoing investor confidence in the company's potential and the broader platinum mining industry in South Africa.
